Hyundai Motor, LGES consider JV deals in US

South Korea’s Hyundai Motor Co and LG Energy Solution Ltd (LGES) are considering building two joint venture battery plants in the United States, a local online news outlet reported on Monday.

Under the contemplated plan, the plants would be built in Georgia and each have an annual capacity of about 35 gigawatt hours (GWH), enough to power about one million electric vehicles (EVS), said the news service, Dailian, citing an unnamed source.

LGES declined to comment. Hyundai Motor was not immediately available for comment when contacted by Reuters.

The report added that the new factories were likely to be located near Hyundai Motor Group’s new EV plant in Georgia and would help the company meet US EV subsidy rules.

The US Inflation Reduction Act will require from next year that at least 40% of the monetary value of critical minerals for batteries be from the United States or a US free-trade partner to qualify for US tax credits.